SEC Pays Coinbase $150K to Settle FOIA Lawsuit Over Lost Crypto Texts

The U.S. Securities and Exchange Commission (SEC) has reached a settlement in a Freedom of Information Act lawsuit filed by Coinbase, agreeing to award the crypto exchange $150,000 for lost text messages related to its approach to crypto regulation.

The FOIA case centered on Coinbase's requests for internal SEC documents following the regulator's dismissal of a lawsuit against the company in early 2025. The SEC claimed that its process automatically wiped certain data, including text messages between former Chair Gary Gensler and other officials.

Coinbase chief legal officer Paul Grewal announced the settlement, stating that the SEC will also fix its record-retention policies. This marks another legal victory for Coinbase amid ongoing efforts to increase crypto regulatory clarity.